LafargeHolcim receives revised divestment order from India (updated)

Birla

08/02/2016 18:21

(Adds quotes, details) 
    ZURICH, Feb 8 (Reuters) - LafargeHolcim  LHN.VX  has 
received a revised order from the Competition Commission of 
India (CCI) to divest its interest in Lafarge India, including 
three cement plants and two grinding stations with total annual 
capacity of 11 million tons, it said. 
    "The proposed transaction is an alternate remedy for the 
merger of the group's legacy companies and now forms part of the 
company's 3.5 billion Swiss franc ($3.54 billion) divestment 
target in 2016," the world's biggest construction materials 
group said in a statement. 
    It said last week it was reviewing its divestment plan in 
India after talks with Birla Corporation Limited (BCL)  BRLC.NS  
for the sale of the Jojobera and Sonadih cement plants in 
Eastern India fell through.  urn:newsml:reuters.com:*:nFWN15I016 
    "We will operate in India through our subsidiaries ACC Ltd 
and Ambuja Cements Ltd with a combined cement capacity of around 
63 million tonnes and a distribution network that extends across 
the entire country," Chief Executive Eric Olsen said. 
    BCL, whose business interests include jute and cement, has 
said it plans to take legal action against the Indian unit of 
LafargeHolcim after a pact to buy some of the assets of the 
Swiss-French cement giant fell through.  urn:newsml:reuters.com:*:nL3N15H426 
    LafargeHolcim cited regulatory issues relating to the 
transfer of mining rights needed by the two plants as the reason 
why it had to submit an alternate remedy to the CCI to ensure 
compliance with an original order it had got in April 2015. 
    "As a result, LafargeHolcim will now launch a new divestment 
process for Lafarge India," it said without elaborating. 
    ($1 = 0.9894 Swiss francs) 
 
 (Reporting by Michael Shields, editing by David Evans) 
 ((zurich.newsroom@thomsonreuters.com; +41 58 306 7336;)) 
 
Keywords: LAFARGEHOLCIM INDIA/